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Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) Scheme- UPSC Current Affairs

Jul 08, 2022

Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) Scheme

Here's our today's edition of Current Affairs Dialog box wherein we will discuss Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) Scheme in detail.

Navigate through the article to get useful insights on the topic and enhance your Civils preparation.


The scheme has completed two years and a journey that started with the zest to empower the unorganized Micro Enterprises. 

About PMFME Scheme

  • PMFME Scheme is a centrally sponsored scheme launched on 29th June 2020.
  • It was launched by the Ministry of Food Processing Industries under Atmanirbhar Bharat Abhiyan.
  • It is currently being implemented in 35 States and Union Territories. 
  • It aims for providing financial, technical and business support for upgradation of existing micro food processing enterprises.

Also read: The Unknown and the Unsung “Alluri Sitarama Raju”

Objectives of the PMFME Scheme

  • Capacity building of entrepreneurs
  • Technology upgradation of existing micro food processing units 
  • Transition of existing enterprises into formal framework 
  • Integration with organized supply chain by strengthening branding & marketing.

Salient Features of PMFME

To achieve above mentioned objectives, the scheme will focus on following components:

  • One District One Product: The scheme adopts the One District One Product (ODOP) approach. The ODOP could be a perishable agri-produce, cereal-based product or a food product widely produced in a district. ODOP will reap the benefit of scale in terms of
    • Procurement of inputs
    • Availing common services 
    • Marketing of products
  • Upgradation of Individual Micro Food Processing Units: 
    • Existing processing units will be encouraged to upgrade their technology or expand their units through Credit Linked Subsidy.
  • Training support for the micro enterprise:
    • All individuals & institutions members receiving grants would undergo training for upgradation of their skills. 
    • Training support would also be provided to other existing individual units and groups producing ODOP products in the district.
    • Training support would also be provided for units that are or could become part of support for Marketing & Branding. 
  • Support To FPOS/SHGs/Producer Cooperatives:
    • The scheme would support clusters and groups such as FPOs/SHGs/ producer cooperatives along their entire value chain.
    • It will be done through credit link subsidy, training or seed capital, etc. 
  • Seed Capital to SHG:
    • Seed capital Rs. 40,000/- per SHG member would be provided to those engaged in food processing for working capital and purchase of small tools. 
    • Priority would be given for SHGs involved in ODOP produce in giving seed capital. 
  • Common Infrastructure:
    • Common infrastructure support would be provided to FPOs, SHGs, cooperatives, any Government agency, or private enterprises. 
    • Common infrastructure created under the PMFME scheme should also be available for other units and the public to utilize on a hiring basis for a substantial part of the capacity.
  • Branding and Marketing Support:
    • Marketing and branding support would be provided to groups of FPOs/SHGs/Cooperatives or an SPV of micro food processing enterprises under the scheme. 
    • Following the ODOP approach, marketing & branding support would only be provided for such a product at the State or regional level.

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